Fwd: Anderson Vs Government

[Frank de Jong]

Having trouble reading this newsletter? View it online. The enews of Prosper & Earthsharing Australia 2016     Phil Anderson on Rents, REITS and Economic Justice  We were a little skeptical when Phillip Anderson told us that he’d be arguing for the abolition of government. End government? It sounded a libertarian pipe dream, even to idealists like us.  We were wrong. Phil delivered a thought provoking presentation on the role of resource sharing in creating and sustaining fair and representative governance. Listen to his talk on Renegade Economists  The problem, as Phil sees it, is that over time governments are co-opted by rent-seeking interests. Countries with large endowments of natural resources tend toward low levels of development, corruption and civil war--a tendency known as natural resource curse, or "the paradox of plenty”.  There’s debate about the exact causes of this dynamic. States with weak institutions are particularly vulnerable. You can learn more from the Natural Resource Governance Institute, a NGO funded by international philanthropy to prevent plundering in developing regions.   Even in places with strong democratic traditions, the curse is relevant. We can look to Australia’s current structural deficit — and the occupation of it’s wealthiest individuals—as evidence. The paradox of plenty is all about who gets the rents. Phil’s solution is pretty simple: tax the rents; distribute them into a publicly listed Real Estate Investment Trust (REIT) or Sovereign Wealth Fund; distribute the income directly. Each citizen is awarded one share at birth, for the term of her natural life. Dividends paid to shareholders provide for the welfare of the people. Behaviour that increases promotes community welfare and economic stability increase dividends. Call it government of the citizen-shareholder.  How realistic is Phil's proposal? Well, here's some of the interesting developments in the global political economy:  Iceland ignored neoliberal advice and allowed its banks to fail, installed strict capital controls which prevented repatriation of rent-seeking capital, nationalised the banking sector and forgave it’s citizens debts. They’re also reforming the tax system in order to capture the value of their fishing and renewable energy rents. Sovereign Wealth Funds are proliferating as countries attempt to capture the windfall gains from resource extraction and save it for future generations. Alaska is directly distributing its oil wealth via the Alaskan Permanent Fund. Sharing the rents could be the key to /www.prosper.org.au/wp-content/plugins/civicrm/civicrm/extern/url.php?u=75210&qid=198271.">bringing peace and stability to Myanmar.   The liberal tradition has long held that economic interdependence begets peaceful political order. Yet, neoliberal economic globalisation seems unable to deliver peace and prosperity for all. Footloose capital is races around the globe in pursuit of rents, undermines sovereign politics, and enables a new global rentier-class: the result is increasing inequality and the collapse of the welfare-state. Or as Michael Husdon would say rent-seeking interests are killing their host.  Bring on government of the citizen shareholder! Emily, Office & Memberships Manager Prosper Australia

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